Assignments

I. Memorise the following words and phrases:

insurance cover	розмір страхової відповідальності
insurance premium	страховий внесок
cover note	тимчасове свідоцтво про страхування, ковернот
to indemnify	відшкодувати збитки
indemnification	відшкодування збитків
fraud	обман, шахрайство
subrogation	суброгація (страх.) перехід прав застрахованого до страхувальника
wrecked vehicle	автомобіль, що зазнав аварії
life assurance	страхування життя
benefit payment	виплата страхової суми
beneficiary	бенефіціарій (одержувач грошей по страховому полісу)
to cover claims for compensation	виплачувати компенсацію
to depreciate	знецінюватися
consequential loss insurance	страхування ризику втрат внаслідок якихось обставин
peril	ризик

II. Suggest the Ukrainian equivalents of the phrases below:

proposal form; the principle of good faith; it might have depreciated by 20% to £ 9,600; stock market; special peril policy; to claim the wrecked vehicle; to pay matured life assurance; to restore original position; original price.

III. Match the following terms and their definitions:

1) beneficiary	a) the price of the insurance
2) special perils police	b) this is not the policy inself, but an agreement that the goods are covered until the policy is ready
3) cover note	c) protects the client against loss or damage due to special factors, e.g. floods or earthquakes
4) idemnification	d) insurance against losing money as a consequence of an accident
5) insurance premium	e) a person who receives something, esp. money or property
6) consequential loss insurance	f) it means that the insurance company will compensate the client to restore their original position before the loss or damage

IV. Answer the questions:

1. What types of policy do you know?

2. What does the policy indemnify the client against?

3. What is the insurance premium?

4. What is a cover note?

5. What does a proposal form state?

6. What does the right of subrogation mean?

7. What does the principle of good faith mean?

7.2. Accident Insurance

Accident insurance covers four areas:

1. Insurance of liability, which covers employers' liabilities for industrial accidents, accidents to people attending functions on company business, and motor insurance.

2. Property insurance, which is part of the service fire insurance companies provide, but also includes a wide range of protection against riots, terrorism, gas explosions, etc. Usually, the client takes out an all risks policy, which offers full protection.

3. Personal accident insurance, which offers compensation in the form of benefit payments to people injured (or their dependants if they are killed) on outings, in sporting accidents, or travelling by train, coach, or air.

4. Insurance of interest, which protects companies against making costly mistakes. For example, publishers might want to cover themselves against libel, i.e. being sued for publishing something which damages someone's reputation. Accountants and lawyers also protect themselves with insurance of interest. Fidelity insurance can be included under this heading. These are used by companies to insure against their employees defrauding them or stealing from them.

Claims

Companies and individuals make claims for loss, damage, or accident by filling in a claim form, which tells the insurance company what has happened. If the insurers accept the claim, often after an inspection or investigation, they will pay compensation.

The insurance company will not pay compensation under the following conditions: if the claimant was negligent; if the claimant suffered the injury or loss outside the terms of the policy; or if the claimant misled the insurers when obtaining insurance, e.g. overvalued the article, insured the same thing twice, or gave false information on the proposal form.

The insurer may, of course, offer less compensation than the claimant is asking for. If the claimant disagrees with the offer, they can call in an independent assessor, and then, if necessary, take the case to court. But usually insurance companies are quite reasonable in their assessments, and small claims are sometimes paid without question.